Write a finance case study- “WNG Capital LLC” case

1.Why does this airline want to enter into a sale-and-leaseback transaction? Why switch from being the owner of the aircraft to just the operator? 2.What does WNG bring to the deal other than money to buy the aircraft? How does the deal fit into WNG’s business model? 3.In what way is leasing similar to borrowing to buy an asset? How is it different? 4.What are the cash flows for WNG? Using a 20% required rate of return (1.67% per month), what do you get as the NPV of the deal? 5.What are the major drivers of value for the sale and leaseback? Which assumptions are you most worried about and why? Should WNG go forward with the transaction or not? 6.Now value the lease from the airline’s perspective. Are the cash flows for the airline the same as for WNG? What do you get as the NPV for the lessee?